IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i11p5181-d1672024.html
   My bibliography  Save this article

Circular Economy as a Driver of Sustainable Growth: Quantitative Analysis of the Role of Recycling and Secondary Raw Materials in the EU

Author

Listed:
  • Biljana Grujić Vučkovski

    (Tamiš Research and Development Institute, 26000 Pančevo, Serbia)

  • Nikola V. Ćurčić

    (Institute for Multidisciplinary Research, University of Belgrade, 11030 Belgrade, Serbia)

  • Ileana Georgiana Gheorghe

    (Business Administration Department, Petroleum-Gas University of Ploiesti, 100680 Ploiesti, Romania)

Abstract

The aim of this research is to determine the significance of the impact of selected environmental protection indicators, with a focus on waste management, on the sustainability of economic growth in EU countries (21 member states) over the period 2013–2022. To conduct this analysis, four independent variables were selected, belonging to the domains of waste management the (recycling rate of municipal waste and recycling rate of packaging waste by type of packaging) and secondary raw material management (the circular material use rate and trade in recyclable raw materials, imports from outside the EU27). Sustainable economic growth was measured by gross domestic product per capita (GDP per capita), which serves as the dependent variable in this study. The aforementioned independent variables can also be categorized as circular economy (CE) indicators, which have been gaining increasing relevance in the EU context. Using a panel regression analysis, the potential influence of CE indicators on sustainable economic growth was examined both over time and across entities, through the lens of waste management. The statistical analysis was conducted by applying four econometric models: pooled OLS (POLS), fixed effects (FEs), random effects (REs), and mixed effects (MEs). The results of the analysis confirmed several specific hypotheses (depending on the model used), which posit a statistically significant positive impact of CE variables on GDP per capita.

Suggested Citation

  • Biljana Grujić Vučkovski & Nikola V. Ćurčić & Ileana Georgiana Gheorghe, 2025. "Circular Economy as a Driver of Sustainable Growth: Quantitative Analysis of the Role of Recycling and Secondary Raw Materials in the EU," Sustainability, MDPI, vol. 17(11), pages 1-17, June.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:11:p:5181-:d:1672024
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/11/5181/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/17/11/5181/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nadezhda Blagoeva & Vanya Georgieva & Delyana Dimova, 2023. "Relationship between GDP and Municipal Waste: Regional Disparities and Implication for Waste Management Policies," Sustainability, MDPI, vol. 15(21), pages 1-23, October.
    2. Massimiliano Mazzanti & Roberto Zoboli, 2009. "Municipal Waste Kuznets Curves: Evidence on Socio-Economic Drivers and Policy Effectiveness from the EU," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(2), pages 203-230, October.
    3. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    4. Zvonimira Sverko Grdic & Marinela Krstinic Nizic & Elena Rudan, 2020. "Circular Economy Concept in the Context of Economic Development in EU Countries," Sustainability, MDPI, vol. 12(7), pages 1-13, April.
    5. Alan Murray & Keith Skene & Kathryn Haynes, 2017. "The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context," Journal of Business Ethics, Springer, vol. 140(3), pages 369-380, February.
    6. Roxana Lavinia Pacurariu & Sorin Daniel Vatca & Elena Simina Lakatos & Laura Bacali & Mircea Vlad, 2021. "A Critical Review of EU Key Indicators for the Transition to the Circular Economy," IJERPH, MDPI, vol. 18(16), pages 1-19, August.
    7. Korhonen, Jouni & Honkasalo, Antero & Seppälä, Jyri, 2018. "Circular Economy: The Concept and its Limitations," Ecological Economics, Elsevier, vol. 143(C), pages 37-46.
    8. Anna Avdiushchenko & Paweł Zając, 2019. "Circular Economy Indicators as a Supporting Tool for European Regional Development Policies," Sustainability, MDPI, vol. 11(11), pages 1-22, May.
    9. Nick Johnstone & Julien Labonne, 2004. "Generation of Household Solid Waste in OECD Countries: An Empirical Analysis Using Macroeconomic Data," Land Economics, University of Wisconsin Press, vol. 80(4).
    10. Eglantina Hysa & Alba Kruja & Naqeeb Ur Rehman & Rafael Laurenti, 2020. "Circular Economy Innovation and Environmental Sustainability Impact on Economic Growth: An Integrated Model for Sustainable Development," Sustainability, MDPI, vol. 12(12), pages 1-16, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ewa Mazur-Wierzbicka, 2021. "Towards Circular Economy—A Comparative Analysis of the Countries of the European Union," Resources, MDPI, vol. 10(5), pages 1-25, May.
    2. Dumitru Alexandru Bodislav & Liviu Cătălin Moraru & Raluca Iuliana Georgescu & George Eduard Grigore & Oana Vlăduț & Gabriel Ilie Staicu & Alina Ștefania Chenic, 2025. "Recyclable Consumption and Its Implications for Sustainable Development in the EU," Sustainability, MDPI, vol. 17(7), pages 1-36, April.
    3. Leandro Javier Llorente-González & Xavier Vence, 2019. "Decoupling or ‘Decaffing’? The Underlying Conceptualization of Circular Economy in the European Union Monitoring Framework," Sustainability, MDPI, vol. 11(18), pages 1-21, September.
    4. Luiz C. Terra dos Santos & Adrielle Frimaio & Biagio F. Giannetti & Feni Agostinho & Gengyuan Liu & Cecilia M. V. B. Almeida, 2023. "Integrating Environmental, Social, and Economic Dimensions to Monitor Sustainability in the G20 Countries," Sustainability, MDPI, vol. 15(8), pages 1-18, April.
    5. Nestor Shpak & Oleh Kuzmin & Olga Melnyk & Mariana Ruda & Włodzimierz Sroka, 2020. "Implementation of a Circular Economy in Ukraine: The Context of European Integration," Resources, MDPI, vol. 9(8), pages 1-15, August.
    6. Maaz Ahmad Khan & Ritika Mahajan, 2025. "Exploring factors influencing circular economy adoption and firm-level practices in the agribusiness sector: an exploratory study of Indian firms," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(4), pages 9039-9069, April.
    7. Hondroyiannis, G. & Sardianou, E. & Nikou, V. & Evangelinos, K. & Nikolaou, I., 2024. "Circular economy and macroeconomic performance: Evidence across 28 European countries," Ecological Economics, Elsevier, vol. 215(C).
    8. Patricia Guarnieri & Lucio Camara e Silva & Fazli Haleem & Augusto Bianchini & Jessica Rossi & Brian Vejrum Wæhrens & Sami Farooq & Edgar Reyes & André Luiz Nascimento Reis & Barbara de Oliveira Vieir, 2022. "How Can We Measure the Prioritization of Strategies for Transitioning to a Circular Economy at Macro Level? A New Approach," Sustainability, MDPI, vol. 15(1), pages 1-31, December.
    9. Rayan Baalbaki & Walid Marrouch, 2020. "Is there a garbage Kuznets curve? Evidence from OECD countries," Economics Bulletin, AccessEcon, vol. 40(2), pages 1049-1055.
    10. Swart, Julia & Groot, Loek, 2015. "Waste management alternatives: (Dis)economies of scale in recovery and decoupling," Resources, Conservation & Recycling, Elsevier, vol. 94(C), pages 43-55.
    11. Bote Alonso, Inmaculada & Montalbán Pozas, Beatriz, 2024. "Following the Circular Economy in European rural municipalities through the Spanish Urban Agenda," Ecological Economics, Elsevier, vol. 224(C).
    12. Bianchi, Marco & Cordella, Mauro, 2023. "Does circular economy mitigate the extraction of natural resources? Empirical evidence based on analysis of 28 European economies over the past decade," Ecological Economics, Elsevier, vol. 203(C).
    13. Massimiliano Mazzanti & Francesco Nicolli & Dario Biolcati Rinaldi, 2012. "Multi-Tasking in the Waste Realm.Theoretical and Empirical Insights on Management and Disposal Performances," EuroEconomica, Danubius University of Galati, issue 5(31), pages 88-101, December.
    14. German Arana‐Landin & Waleska Sigüenza & Beñat Landeta‐Manzano & Iker Laskurain‐Iturbe, 2024. "Circular economy: On the road to ISO 59000 family of standards," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1977-2009, May.
    15. Francesco Nicolli & Francesco Vona & Lionel Nesta, 2012. "Determinants of Renewable Energy Innovation: Environmental Policies vs. Market Regulation," Working Papers 201204, University of Ferrara, Department of Economics.
    16. Carmen van der Merwe & Martin de Wit, 2021. "An In-Depth Investigation into the Relationship Between Municipal Solid Waste Generation and Economic Growth in the City of Cape Town," Working Papers 07/2021, Stellenbosch University, Department of Economics, revised 2021.
    17. Mazzanti, Massimiliano & Montini, Anna & Zoboli, Roberto, 2006. "Municipal Waste Production, Economic Drivers, and 'New' Waste Policies: EKC Evidence from Italian Regional and Provincial Panel Data," Climate Change Modelling and Policy Working Papers 12053, Fondazione Eni Enrico Mattei (FEEM).
    18. Risa Arai & Martin Calisto Friant & Walter J. V. Vermeulen, 2024. "The Japanese Circular Economy and Sound Material-Cycle Society Policies: Discourse and Policy Analysis," Circular Economy and Sustainability, Springer, vol. 4(1), pages 619-650, March.
    19. Millar, Neal & McLaughlin, Eoin & Börger, Tobias, 2019. "The Circular Economy: Swings and Roundabouts?," Ecological Economics, Elsevier, vol. 158(C), pages 11-19.
    20. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09j0h0ji242 is not listed on IDEAS
    21. Cecere, Grazia & Mancinelli, Susanna & Mazzanti, Massimiliano, 2014. "Waste prevention and social preferences: the role of intrinsic and extrinsic motivations," Ecological Economics, Elsevier, vol. 107(C), pages 163-176.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:11:p:5181-:d:1672024. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.